UK unemployment dropped to 4.9% and wage growth accelerated in April, exceeding forecasts. Despite this, employers are cautious about hiring permanent staff due to Middle East instability. The Bank of England faces pressure to raise interest rates.
UK unemployment rose to 5% in March, with the Iran war blamed for a fresh wave of inflation and a drop in business confidence. Payrolled jobs fell by 100,000 in April, and regular pay growth is at its weakest since 2020.
European stocks are set for a mixed opening Tuesday as traders digest geopolitical tensions in the Middle East and rising UK unemployment. Oil prices fell after President Trump postponed an attack on Iran, while UK joblessness hit 5%.
Bank expects its base case for GDP growth to be 0.5% this year, lower than IMF’s 0.8% prediction for BritainBusiness live – latest updatesLloyds has warned that the economic fallout from the Middle East conflict could cost it £151m amid rising unemployment and inflation and a slowdown in the housing market.The FTSE 100 group, whose brands include Lloyds Bank, Halifax and Bank of Scotland, issued a downbeat economic forecast that it said reflects the stagflationary consequences – the double hit of rising inflation at the same time as slower economic growth – for the UK and global economies. Continue reading...
UK unemployment fell to 4.9% in the three months to February, down from 5.2% expected, driven by a rise in economic inactivity as fewer students sought work alongside their studies. Wages rose 3.6% annually, the weakest since late 2020, while job vacancies fell to 711,000, the lowest in nearly five years. The IMF has warned the Middle East conflict could hit the UK hardest among advanced economies, cutting growth forecast to 0.8%.
The UK unemployment rate unexpectedly dropped to 4.9% in the three months to February, though wage growth slowed to its weakest pace since 2020. Rising economic inactivity and falling job vacancies suggest a cooling labour market ahead of potential energy-driven headwinds.
The UK labour market shows signs of fragility despite a surprise drop in unemployment to 4.9%. Weak wage growth and rising economic inactivity, coupled with geopolitical tensions in the Middle East, create a challenging environment for the Bank of England's interest rate policy.
UK unemployment dropped unexpectedly to 4.9% in the three months to February, but wages grew at just 3.6% annually – the weakest since late 2020. The decline reflects fewer students seeking work rather than stronger hiring, while inactivity rose to 21%. Economists warn the Iran war's energy price surge could push unemployment higher in coming months.
The UK's unemployment rate unexpectedly fell to 4.9% in the three months to February, down from 5.2% predicted by analysts. However, payrolled employment slipped by 11,000 in March—the first data covering the Iran war period—while annual wage growth slowed to 3.6%, the weakest since late 2020. Despite the slowdown, pay continues to rise faster than inflation, though economists warn of potential reversal.
UK unemployment unexpectedly fell to 4.9% in the three months to February from 5.2% in January, contrary to economist expectations. However, payroll data showed 11,000 fewer workers in March, and the EY Item Club forecasts unemployment will rise to 5.8% by mid-2027 due to Middle East conflict impacts, with nearly 250,000 additional job losses.
UK unemployment rate fell to 4.9% in the three months to February, down from 5.1%, but early data shows 11,000 job losses in March as the US-Iran war began. The Item Club forecasts unemployment will rise to 5.8% in just over a year, affecting nearly 250,000 people, with inflation expected to peak at 4% and economic growth halving to 0.7% in 2026.
The UK's unemployment rate fell to 4.9% in the three months to February, down from 5.2%, according to ONS figures. However, early data shows payrolled employment dropped by 11,000 in March - the first month of the US-Iran war. The Item Club forecasts unemployment could hit 5.8% in just over a year, affecting nearly 250,000 people, with inflation expected to peak at 4% and growth halving to 0.7% in 2026.
A record 1.35 million UK adults are working at least two jobs, with Gen Z leading this 'poly-employment' trend as the cost of living crisis forces young workers to juggle multiple roles. Young people aged up to 29 are the primary drivers of this increase, with some working up to 60 hours a week across three jobs to afford housing and basic living costs.
